SBA 504 Loans

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The 504 Loan Program was created by the SBA to help small businesses meet their commercial real estate and equipment needs.

As a Certified Development Company (CDC), LiftFund administers SBA’s 504 Loan Program in Texas.  This program is designed specifically to finance fixed asset acquisition such as:

  • Purchase of existing buildings
  • Purchase of land and land improvements
  • Construction of new facilities or modernizing, renovating or converting existing facilities
  • Purchase of long-term machinery
  • Some furniture and fixtures

In addition, the 504 program can also be used to refinance existing debt that is:

  • Outstanding for at least 2 years
  • Owed by a business in operation at least 2 years
  • Current on all payments for the last 12 months
  • Originally used substantially (85% or more) to finance eligible 504 uses (see above)
  • A non-federal loan

A typical 504 loan financing structure shows how LiftFund works in partnership with a participating lender (typically a bank) to finance a portion of the project.  Most projects require a 50-40-10 split, but there are exceptions.  An additional 5% equity will be required for new businesses and/or projects considered “special purpose”.

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Advantages of the 504 Loan Program

  • 90% financing
  • Longer loan amortizations, no balloon payments (up to 20 years)
  • Fixed interest rates

To qualify, an applicant must create or retain one job for every $65,000 financed by SBA or meet one of SBA’s community development or public policy goals.  Contact LiftFund for more details.